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Income Tax Appellate Tribunal, “A” BENCH, MUMBAI
Before: SHRI PRASHANT MAHARISHI, AM & MS. KAVITHA RAJAGOPAL, JM
O R D E R Per Kavitha Rajagopal, J M:
This appeal has been filed by the assessee trust, challenging the order of the learned Commissioner of Income Tax Exemption, Pune (‘ld.CIT(E) for short) passed u/s.12AB r.w.s. 80G(5)(iii) of the Income Tax Act, 1961 (‘the Act'), dated 30.09.2022, rejecting the Registration u/s. 12AB of the Act pertaining to the Assessment Year (‘A.Y.’ for short) 2022-23.
The solitary ground raised by the assessee in this appeal is the rejection u/s. 12AB of the Act on the ground that the assessee has failed to furnish the details of activities of the trust and has thereby being non compliant.
(A.Y. 2022-23) Aasha Cancer Trust & Research Centre vs. CIT (Exemption) 3. The appeal is time barred by 34 days and the assessee vide an Affidavit has prayed for condoning the delay. We are of the opinion that there was sufficient cause for the delay in filing the appeal on time, we hereby condone the delay in filing the said appeal by placing reliance on the decision of the Hon'ble Supreme Court in the case of Collector Land Acquisition vs. MST Katiji & others [1977] 167 ITR 471 (SC).
The brief facts are that the assessee Trust is registered under Mumbai Public Trust Act, 1950 vide registration dated 07.07.2010 and u/s. 12A(1)(ac)(i) of the Act dated 31.08.2021. The main objective of the assessee trust is to provide medical help to cancer patients by arranging cancer detection and medical camps. The trust deed contains the objectives of the assessee which are charitable in nature. The assessee contains that the ld. CIT(E) has issued a Provisional Registration Certificate u/s. 80G(5)(iv) (in Form 10AC) of the Act dated 23.09.2021 for a period from 23.09.2021 to A.Y. 2024-25. The assessee further stated that it had filed all the basic documents and information along with Form 10AB such as the Trust deed, audited financials and other necessary documents. It is observed that the ld. CIT(E) had rejected the application of the assessee in Form No. 10AB vide its order u/s. 12AB r.w.s. 80G(5)(ii) dated 30.09.2022 for the reason that the assessee had failed to upload the details pertaining to the activities carried out by the assessee trust and, hence, the ld. CIT(E) held that the genuineness of the activities of the assessee was not proved and hence the assessee has failed to satisfy the condition of clause (i) to (v) to section 80G(5) of the Act.
Aggrieved by the said order, the assessee is in appeal before us.
(A.Y. 2022-23) Aasha Cancer Trust & Research Centre vs. CIT (Exemption) 6. The learned Authorised Representative (ld. AR for short) for the assessee contended that the assessee was not given a reasonable opportunity of hearing by the ld. CIT(E) and had contended that the Trust deed of the assessee was sufficient proof to show that the activities of the assessee was of charitable in nature. The ld. AR relied on the various decisions in favour of the assessee on similar facts.
The learned Departmental Representative (ld. DR for short) for the Revenue, on the other hand, controverted the said fact and stated that the assessee was given sufficient opportunity before the ld. CIT(E) and the assessee had failed to furnish the relevant documentary evidence to prove the activities of the assessee. The ld. DR further stated that the photos of the Trust relied upon by the assessee does not give the exact nature of the Trust. The ld.DR relied on the order of the ld. CIT(E).
We have heard the rival submissions and perused the materials available on record. It is observed that the assessee has filed an application before the ld. CIT(E) in Form No. 10AB in clause (iii) of first proviso to sub section 5 of section 80G dated 30.03.2022. The ld. CIT(E) had issued noticed through ITBA Portal dated 03.08.2022 to upload certain information/clarifications by 18.08.2022 and further opportunity was given vide notice dated 16.09.2022. It is observed that the assessee has not submitted the required details sought for by the ld. CIT(E). The ld. CIT(E) by placing reliance on Rule 11(AA)(2)(h) of the I. T. Rules where the application in Form 10AB should be accompanied along with the note on the activities of the assessee was said to be not complied by the assessee. The ld. CIT(E) rejected the application of the assessee for the reason that the assessee has failed to furnish the details and proof of the activities carried
(A.Y. 2022-23) Aasha Cancer Trust & Research Centre vs. CIT (Exemption) out by the assessee inspite of several opportunities. The assessee, on the other hand, has relied on the trust deed furnished to the ld. CIT(E) which according to the assessee contains the activities of the assessee. It is observed that the ld. CIT(E) has rejected the application for registration merely on technical aspects. It is also observed from the submission of the ld. AR that the assessee trust has not received any donation. On considering the facts of the present case, we find merit in the submission of the ld. AR.
We hereby direct the assessee to make afresh application before the ld. CIT(E) and the ld. CIT(E) is also directed to look into the merits of the assessee Trust and to grant registration based on the submissions proposed to be made by the assessee.
In the result, the appeal filed by the assessee is dismissed with a liberty given to the assessee to file a fresh application for registration before the ld. CIT(E).
Order pronounced in the open court on 19.05.2023